MANILA, Philippines?Senators now want to impose 'financial discipline' on government owned and controlled corporations (GOCCs) by requiring them to declare their earnings and justify their expenditures for Congress' approval and ?knock them down? if they have become a burden to the government.
During the briefing of the Senate committee on finance Tuesday, the senators agreed to craft a resolution that would compel GOCCs to remit their surpluses to the national fund so they could be utilized properly rather than leave it for abuse by some unscrupulous executives of government corporations.
For 2010, the projected earmarked revenue from government corporations amounted to P47 billion, Yolanda Doblon, director general of the Senate Legislative Budget Research and Monitoring Office, told the committee.
?We should require them to declare most of their surpluses to the government to form as part of the general fund and that when they need money for their operations or capital development , then they should come to Congress, to the budget office to justify their expenditures in order that there's a certain financial discipline in the entire government,? said Senate President Juan-Enrile.
?What's happening now is that these funds are placed in different pockets of the government in the form of public corporations and they are beyond the scrutiny of Congress whenever they are used so you have the abuse that is now happening for executive of government corporations can have as much as they want, bonuses, travel expenses, representation expenses, including high salaries,? he said.
?So I think in order to really pool together all the funds of the government, all of these funds should be thrown back to the pool, to the general fund. And each corporation when they need funds for their operation, requirement for development, for their support , then they must go to the budget office and to Congress to justify the acquisition of funds for their purposes,? Enrile added.
He said Congress for instance may look into the case of Pag-IBIG Fund if it is earning money for the government.
Enrile acknowledged, however, that government trust funds like the Social Security System and the Government Service Insurance System could not be covered by this proposed measure.
?But it's time that we scrutinize each one of them especially those that have been eating up the revenue of government for their purposes but they are not doing anything. We're just supporting them,? he said.
?We have to look at them very carefully and then knock them down if necessary. Of course, it's hard to do this because there are people who will be thrown out of jobs but I think it's about time,? he further said.
Neophyte Senator Teofisto Guingona III immediately seconded Enrile's proposal, saying government corporations that have become a burden should be close down if necessary.
?I fully support the statement of the Senate President. I think it's also high time that we take a hard look at the government corporations and rationalize. The government has very huge carrying costs for these corporations and I think it?s high time to take a look at them, rationalize and close down those that are a burden to Philippine society,? said Guingona.
?It's time to stop the abuses and the leakages in revenues,? he further said.
But Senator Ralph Recto pointed out the budget submitted to Congress by the President already contained provisions that allowed the government to look into a few corporations particularly the energy corporations.
And while he acknowledged that GOCCs have their own charter, Senator Franklin Drilon, chairman of the committee, insisted that Congress could still look into their expenses.
?Yes, they have their own charter. But we have the right to inquire how much money they have and why they have accumulated so much,? Drilon said at a press conference after the briefing.
And while he acknowledged that the board of each corporation could decide how they would spend their money, the senator hopes Congress can do something to prevent abuse and misuse of government funds.
